CC PACKET 02031998 - Laserfiche WebLink

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Iz 1 MEMORANDUM DATE: January 26, 1998 TO: Mike Mornson, City Manager ' FROM: Roger Larson, Finance Director ' ITEM: 1998 WATER/SEWER RATES The Public Works Director has submitted a 1998 water budget of $389,800 and a sewer budget tof$690,400. Based on the approval of those budgets, I have completed an analysis to determine if a rate ' increase is necessary to balance these operating budgets. The results are as follows: Water: In 1998 it is anticipated that St. Anthonyill sell 41 000 000 cubic feet of water. Calculating P Y g the estimated 1998 water sales (41,000,000 divided by 100 x $ .94) shows a total income of $385,400. ' Expenditures of $389,800 plus the water filtration levy transfer of $15,200 requires revenues to total $405,000. Based on estimated water sales of $385,400 a deficit of ($19,600) exists and a rate increase is necessary to balance the water-operating budget. tRecommendation: The present rate of $.94 per 100 cubic feet is not sufficient to balance the 1998 water operating budget. Projected expenditures exceed revenues by ($19,600), therefore, staff recommends ammending ordinance 610.02 to reflect a rate increase of$ .05 cents per 100cf. ' (41,000,000 divided by 100 X $ .99 = $ 405,900) Sewer: ' Currently, sanitary sewer disposal costs the residents $1.72 per 100 cubic feet. Based on Metro Waste's estimate of flowage, disposal costs for '98 will be significantly higher than last year. In 1998, Metro Sewers charges will be based on 360,000,000 gallons of sanitary waste for a total disposal cost of$486,000 compared to last year's payment of$383,200 (Up $102,800).